The key theme of Sir Keir Starmer’s International Investment Summit was “stability.” Addressing the UK’s political volatility of recent years, Starmer emphasized that his party’s majority would usher in a more predictable and stable economic environment, which is crucial for long-term investors.
International business leaders, such as Anders Opedal, CEO of Norwegian energy giant Equinor, praised the UK’s strategic approach to working with the private sector. Equinor has heavily invested in the UK’s energy sector, and Opedal acknowledged that the next step is effective execution of policies to support growth. Domestic firms echoed this sentiment, with Amanda Blanc, CEO of Aviva, commenting on the positive mood at the summit.
Another recurring theme was “regulation.” While often seen as a burden, Starmer clarified that smart regulation could clear obstacles, such as the excessive paperwork required by energy companies for infrastructure projects. However, Labour’s recent increase in employment regulations—introducing higher wages and new employee rights—has been met with mixed reactions from the business community. Even John Caudwell, a prominent business figure, expressed concerns over the additional burden, though he acknowledged that businesses might accept these challenges if the wider economic growth goals are met.
The looming Budget announcement casts a shadow over the summit’s optimism. Chancellor Rachel Reeves hinted at possible increases in National Insurance contributions on employer pension contributions, which could impose a significant cost on businesses. At the same time, she indicated a shift in fiscal policy by potentially excluding infrastructure investments from traditional debt measurement, a move that would allow for greater public investment but could raise borrowing costs.
Labour’s renewed focus on an Industrial Strategy, aiming to support key sectors like advanced manufacturing, clean energy, and digital technologies, was another focal point. Starmer likened this strategic groundwork to ensuring the “pitch is mown” for the UK’s economic players.
While Labour hailed the summit as a success, particularly in contrast to previous government efforts, the real test will be in the Budget’s impact on business and investment. With discussions around capital gains tax, public borrowing, and sectoral focus, investors are watching closely to gauge the government’s commitment to long-term growth.
For those looking to invest after the Investment Summit in the UK, BSO Fintax offers tailored solutions like the SEIS (Seed Enterprise Investment Scheme), ensuring your investments are both tax-efficient and growth-oriented. Get in touch with us to explore opportunities that align with your financial goals.
